The technology advancement and cost decline of renewable and sustainable energy increase the penetration of distributed energy resources (DERs) in distribution systems. Transactive energy helps balance the local generation and demand. Peer-to-peer (P2P) energy trading is a promising business model for transactive energy. Such a market scheme can increase the revenue of DER owners and reduce the waste of renewable energy. This article proposes an equilibrium model of a P2P transactive energy market. Every participant seeks the maximum personal interest, with the options of importing or providing energy from/to any other peer across different buses of the distribution network. The market equilibrium condition is obtained by combining the Karush–Kuhn–Tucker conditions of all problems of individual participants together. The energy transaction price is endogenously determined from the market equilibrium condition, which is cast as a mixed-integer linear program and solved by a commercial solver. The transactive energy flow is further embedded in the optimal power flow problem to ensure operating constraints of the distribution network. We propose a remedy to recover a near optimal solution when the second-order cone relaxation is inexact. Finally, a case study demonstrates that the proposed P2P market benefits all participants.
A Scalable Mixed-Integer Decomposition Method for Security-Constrained Optimal Power Flow with Complementarity Constraints
